ASSEMBLY, No. 168

STATE OF NEW JERSEY

INTRODUCED FEBRUARY 22, 1996

By Assemblymen ASSELTA, AUGUSTINE and Geist

An Act concerning the eligibility of certain employees of public employers other than the State for coverage under the New Jersey State Health Benefits Program and supplementing P.L.1964, c.125 (C.52:14-17.34 et seq.).

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. Notwithstanding any provision to the contrary of section 5 of P.L.1964, c.125 (C.52:14-17.36) or any other law, or of any rule or regulation, for the purposes of determining eligibility for coverage under the health benefits program established pursuant to section 3 of P.L.1961, c.49 (C.52:14-17.27), a person who, on December 17, 1995, was covered by the program shall, if the employer continued to be a participating employer and the employee continued to appear on the regular payroll of the employer and to receive a salary or wages for an average of at least 20 hours per week during the period commencing on December 18, 1995 and ending on the effective date of this act, be eligible for such coverage for so long after that effective date as the employer continues to be a participating employer and the employee continues to so appear on the payroll of that employer and receive compensation for a work week having an average duration of at least 20 hours.

    2. This act shall take effect immediately.

STATEMENT

    This bill provides that a local government employee who was covered under the New Jersey State Health Benefits Program (SHBP) on December 17, 1995 shall, if the employer continued to participate in the SHBP and the employee continued to be employed with that employer for an average work week of 20 hours during the period between that date and the date on which this legislation takes effect as law, be eligible for such coverage for so long after that effective date as the employer continues to be a participating employer and the employee continues to work for the employer for an average of at least 20 hours per week.

    On September 21, 1995, the State Health Benefits Commission adopted an amendment to the commission's regulation governing "full-time employment" for purposes of determining a local government employee's eligibility for SHBP coverage; the amended version of the regulation became effective upon its official publication on December 18, 1995. Prior to the amendment, "full-time" status was accorded any such employee who worked an average of at least 20 hours per week. Under the regulation as amended, local employers were permitted to establish a higher standard for full-time status. Thus this legislation would, in effect, retroactively "grandfather" application of the prior regulation for employees covered under that regulation who have been and remain continuously employed with the same employer for a minimum average work week of 20 hours.

Provides that local government employees deemed full-time for SHBP coverage purposes on December 17, 1995 shall retain such status during continued employment under certain circumstances.